H.R.2800 - Boost the Middle Class Act (119th Congress)
Summary
H.R.2800, the "Boost the Middle Class Act," proposes amendments to the Internal Revenue Code of 1986, specifically targeting an increase in the Earned Income Tax Credit (EITC). The bill aims to adjust earned income amounts, phaseout amounts, and phaseout amounts for married individuals filing jointly. These adjustments are designed to provide greater tax relief to low- and moderate-income working individuals and families.
Expected Effects
The likely effect of this bill, if enacted, would be an increase in the amount of the EITC received by eligible taxpayers. This would translate to more disposable income for these households. The bill also includes inflation adjustments to ensure the EITC keeps pace with changes in the cost of living.
Potential Benefits
- Increased financial support for low- and moderate-income working families.
- Potential reduction in poverty rates.
- Stimulation of the economy through increased spending by EITC recipients.
- Simplification of the tax code through inflation adjustments.
- Greater equity in the tax system.
Potential Disadvantages
- Potential increase in government debt and budget deficits.
- Possible disincentive to work for those near the phase-out range of the EITC.
- Complexity in administering the EITC program.
- Risk of improper payments or fraud.
- Potential for inflation if not managed correctly.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the Constitution's mandate to "promote the general Welfare" (Preamble). Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts, and excises to pay the debts and provide for the common defense and general welfare of the United States. The EITC, as amended by this bill, falls under this power as it aims to improve the financial well-being of working families.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).